Thursday, November 19, 2009

NRG Energy: 'Wholesale' power play (NRG)

"The uncertain market has changed our risk appetite and shifted our focus to stocks deemed safe enough for even the most conservative investors," says Jonas Elmerraji.

The editor of The Rhino Stock Report suggests, "Among them are regulated utilities, including our latest recommendation -- NRG Energy (NRG), which is involved in wholesale power generation.

"Investors have long favored utilities for a few very good reasons: predictable, recession-resistant revenues; steady streams of dividends; and government-sanctioned monopolies. They're a safe haven for stressed investors in the midst of a recession.

But while much of the retail stock buying focuses its attention on the predictable utility stocks, one deeply related and highly profitable niche is being left to the wayside -- wholesale power generation.

"Many people don't realize the fact that power companies don't own all of this country's power generation facilities. A different class of utility stocks, known as wholesale power generators, engages in turning commodities like coal, oil, and natural gas into energy....MORE